Looking for protection from financial losses? While you may contemplating as to which insurance policy would be suitable to your needs given the plethora of policies, these companies are also coming out with their IPOs. There are five mega Insurance IPO’s lined up before the end of 2017 which you may want to consider. These companies are set to collectively raise up to Rs 40,000 crore before the end of 2017. These companies are HDFC Standard Life Insurance, New India Assurance, GIC of India, SBI Life Insurance Company and ICICI Lombard General Insurance Company. Take a look.
HDFC Standard Life Insurance
HDFC Standard Life Insurance filed draft papers with capital markets regulator Sebi to raise an estimated Rs 7,500 crore through an initial public offering last week. The public issue involves sale of 1,91,246,050 equity shares, amounting to 9.55 per cent stake, by HDFC Ltd and up to 1,08,581,768 scrips or 5.42 per cent holding by Standard Life Mauritius.
GIC of India
State-owned reinsurance company General Insurance Corp. of India (GIC) had filed the draft red herring prospectus (DRHP) for its initial public offering (IPO) two weeks back. According to media reports, the company seeks to raise up to Rs 10,000 crores through the proceeds.The IPO will see a total stake dilution of 14.22%.The government plans to sell 107.5 million shares in the IPO, while the company will issue around 17.2 million new shares.
SBI Life Insurance Company
SBI Life Insurance Company, a subsidiary of State Bank of India intends to raise upto Rs 7,000 crore and had filed the DRHP with SEBI last month. State Bank of India which owns 70% stake in the company is planning to sell 8% stake in the company for Rs 8 crore, while BNP Paribas Cardif is offloading nearly 4 crore or 4% of the equity.
ICICI Lombard General Insurance Company
ICICI Lombard, founded in 2001, became the first non-life insurance company to file for a public offering last month, when it filed the draft red herring prospectus for its initial public offering (IPO). The IPO is slated to be a pure offer for sale, wherein ICICI Bank and Fairfax sell around 86.24 million shares. The issue size is likely to be Rs 3,500-4,000 crore according to media reports.
New India Assurance
A government-owned entity, New India Assurance filed it’s draft IPO papers with SEBI this week. The company is likely to raise Rs 6,500 through the IPO. The GIC and New India Assurance initial public offerings (IPOs) are likely to see the government divest at least a 10% stake in each of the insurers say media reports.
With the IPO market bustling with activity and persisting bullish market sentiments, despite intermittent volatility, around two dozen companies have filed preliminary papers for initial public offers (IPOs) with regulator Securities and Exchange Board of India (Sebi) so far this year.
A Bloomberg news report quoted ICICI Securities’ Investment Banking Head Ajay Saraf as saying that total fundraising via IPOs could rise to Rs 50,000 crore this year. The previous record is Rs 36,300 crore worth of IPO money raised in the year 2010, the Bloomberg news report said. This year has seen high profile IPOs such as that of BSE Ltd — the first stock exchange to get listed in India — HUDCO, Cochin Shipyard, CDSL, D-Mart, among others. Going further, five insurance companies are expected to collectively raise up to Rs 40,000 crore before the end of 2017.